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LKPG - Luka Koper Dd News Story

€21.4 0.6  2.9%

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Sector
Industrials
Size
Small Cap
Market Cap £247.5m
Enterprise Value £260.7m
Revenue £181.7m
Position in Universe 126th / 646

UPDATE 2-Slovenia aims to sell Telekom, cut deficit -finance ministry

Wed 22nd October, 2014 6:34pm
(Updates with budget plans from para 2) 
    By Marja Novak 
    LJUBLJANA, Oct 22 (Reuters) - Slovenia expects to sell 
Telekom Slovenia  TLSG.LJ , the most valuable company on its 
privatisation list, in early 2015, state secretary at the 
finance ministry Metod Dragonja told reporters on Wednesday. 
    The government also plans to cut the public sector wage bill 
by 3 percent next year to help bring the budget deficit to below 
3 percent of gross domestic product, in line with euro zone 
rules, the finance ministry said later on Wednesday. 
    It also plans to raise taxes on financial and insurance 
services, raise excise duties on sweet drinks and improve tax 
collection so as to boost the budget income and enable the 
government to increase spending for investment by some 24 
percent next year to 1.5 billion euros. 
    Euro zone member Slovenia narrowly avoided having to seek an 
international bailout last year for its state-owned banks. Now 
government bond investors are looking to privatisations such as 
Telekom's to help the country shore up its finances.   
    Dragonja said the government would adopt a strategy by the 
end of the year for further privatisations. 
    "The state asset management strategy will also need to be 
approved by parliament," Dragonja told reporters on the 
sidelines of an investment conference. He said the government 
plans to keep infrastructure firms, such as the Luka Koper 
 LKPG.LJ  port, in state hands. 
    Prime Minister Miro Cerar told the same conference Slovenia 
was committed to attracting more foreign direct investment and 
pursuing privatisation. 
    Slovenia, whose annual economic output amounts to some 35 
billion euros, pumped more than 3 billion euros ($3.8 billion) 
into the local lenders last year to prevent them from collapsing 
under a large amount of bad loans.  
    Cerar's one-month-old cabinet has pursued the sale of 15 
firms earmarked for sale last year, of which three have been 
sold so far. 
    Telekom has a market capitalisation of 941 million euros and 
selling the state's 72.75 percent stake is expected to raise 
more than 700 million euros for the government.  
    Cerar said the proceeds of the privatisation will be used to 
finance development and reduce the nation's debt, which is 
expected to rise to some 82.2 percent of GDP this year from 70 
percent in 2013. 
 (1 US dollar = 0.7879 euro) 
 
 (Reporting by Marja Novak; Editing Ruth Pitchford) 
 ((Marja.Novak@thomsonreuters.com; +386-8-205-6369; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/
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